UKCS Gas Creates Under Half the GG of Imported LNG



UKCS Gas Creates Under Half the GG of Imported LNG
The production of natural gas from the UK Continental Shelf creates less than half as much greenhouse gas as imported Liquefied Natural Gas, according to the OGA.

The production of natural gas from the UK Continental Shelf (UKCS) creates less than half as much greenhouse gas as imported Liquefied Natural Gas (LNG).

That’s according to a new analysis published by the UK Oil and Gas Authority (OGA), which outlines that gas extracted from the UKCS has an average emission intensity of 22 kgCO2e per barrel of oil equivalent (boe) and imported LNG has an average intensity of 59 kgCO2e/boe.

The process of liquefaction, combined with the emissions produced by the transportation and regasification of the LNG once in the UK, is responsible for the higher emissions intensity of LNG, according to the OGA.

Last year, the UKCS supplied 46 percent of UK gas consumption, imported LNG supplied 21 percent and the remaining 33 percent was imported via pipeline, the OGA highlighted. Estimates predict that gas demand will decline from the current level of 69 billion cubic meters (bcm) in 2019 to 60 bcm in 2035 and that UK gas production will fall from 35 bcm in 2019 to 16 bcm in 2035, according to the OGA.

“Current government forecasts suggest that gas will remain a vital part of the UK’s energy mix as we move towards Net Zero,” the OGA said in an organization statement.

“As long as this demand exists, managing declining North Sea production to maximize value, minimizing greenhouse gas emissions and reducing reliance on hydrocarbon imports are all essential,” the OGA added.

“However, while avoiding higher emissions imports, there is still scope to significantly reduce UK production carbon footprint. The industry should rapidly progress this or risk losing its social license to operate,” the OGA continued.

The OGA works with the industry and government to maximize the economic recovery of UK oil and gas, according to its website. The organization became a UK government company in October 2016.

To contact the author, email andreas.exarheas@rigzone.com



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